Zara Postponement Strategy The case of Zara - The Postponement strategy I) Introduction In order to compete in the world of rising globalization and shortening of product life cycle nowadays firms have to deal with the demand for increasing product variety to meet the diverse needs of customers. In 2012, Inditex reported sales of about 16 billion euros from more than 6,000 retail outlets in about 86 countries. For Zara to successfully compete with luxury brands, it must first identify with customers as being a luxury brand. This is the source of the brand's quick growth and reputation. Postponement is defined as a strategy to intentionally delay activities, rather than starting them with incomplete information about the actual market demands (Yang, Burns, & Backhouse, 2005). In other words, introducing a new product may limit the success of another product that would have otherwise done well. Still, the common strategic motivation is to gain better information about customer demand by waiting to customize a product for a particular market or customer. Heidelberg: Springer, 54-57 Ferdows, K., Lewis, M.A., & Machuca, J. Pagh, J.D. The following section summarizes the key postponement types that Zara utilizes in their value chain. However, the more product varieties, the more difficult it is to forecast demand, control inventory and manufacture. Instead, it introduces three salient components of Zara: the business model, the environment, and society at large. Yet as in other sectors, many US managers are still in the grip of traditional management thinking and are slow to respond. Whereas Zaras markdowns are typically around 15%, the markdowns at US apparel retailers and department stores are typically in the 50-70% range. There are various models on postponement covering a continuum from pure standardization to customization. These are used to analyze what is on trend or being said on social platforms. At the start of each selling season, the designing team create a library of models that serve as platforms for the models that will be eventually launched (Swaminathan and Le, 2003). This being a sort of subset of the control advantage, Zara has a distinct advantage in its ability to create efficient supply chains. Once a customer specifies the platform, the rest of the sandwich is made-to-order. The "fast fashion" philosophy will be put into test in the future, and I'm looking forward to seeing how Zara adjusts its marketing strategy. Speaking of loyal customers, Zara's meaningful experience and values tap the potential of frequent buyers to promote the brand. Zara is revolutionizing its products even more" %}. The founder Amancio Ortega is currently the sixth richest man in the world. Through technology and mobile connectivity, shoppers can access inventory not present in their locations conveniently. Give us your email address and well send this sample there. It refers to delayed decision-making about a product. This is one of Zara's first steps to move into online selling more, and it received good feedback from the customers. These brand loyalists are also less price sensitive. This leads us to a traditional marketing research method, which is called the 4p's strategy, which includes products, place, price, and promotion. While it cannot be said whether or not Zara is successful in creating a greater general welfare in the societies it touches, it can be said definitively that it influences a great number of societies. Zara uses proprietary software to analyze fashion trends from each of its many hundreds of stores around the world. The principle of this is that forecasting demand at component level is easier than that at finished good stage (Yang at al., 2005). It tries to capitalize on the store experience by always offering reasons for the buyers to revisit the stores. But the quality is not compromised, the fabric used is still of sufficiently good quality but meant to be used for just one season. In short, Zara products have the latest styles, trending designs, affordable prices, and local-adapted tastes. The term postponement in the supply chain is similar to its actual meaning. Postponement strategies can be applied to form, time and place (Hoek et al., 1998). In 2019, Zara introduced the "Edited" collection, which lets buyers personalize their clothes with custom stitched names or phrases. The parent company Inditex also has other fashion brands in its portfolio, such as Zara Home, Pull & Bear, Massimo Dutti, Bershka, Oysho, Bershaka, and Uterqe. Zara has a highly evolved data infrastructure that can analyze what is selling and trending on social media platforms. These helps reduce the stock-keeping units in the supply chain (Pagh and Cooper, 1998) while improving customer responsiveness (Yang et al., 2004a). a. Besides the supply chain efficiencies and marketing philosophies, one of the key factors for Zara's success is its postponement strategy. Finally, time postponement refers to the concept that products are not shipped to the retail warehouses but are held at a central warehouse and are shipped to customers directly. Innovative Quick Response Programs in Logistics and Supply Chain Management. Figure 5: Zaras Demand-Driven Approach (Cheng and Choi, 2010) Zara focuses its forecasting efforts on the type and quantity of fabric it purchases. By properly designing the product structure and the manufacturing and supply chain process, Zara can delay the point in which the final products assume their specific characteristics, thus raising the flexibility to handle the changing demand for the multiple products. How Zara can provide an experience for the customer in every place of existence is what the brand has focused on since day one. Being vertically integrated also enables more fluid communications between stages of the Zara product cycle: design, manufacturing, transportation, etc. Fast fashion links upstream inventory commitments with a brands downstream profitability. {% include image.html src="https://cdn2.avada.io/media/resources/JwPDOo3.jpg" alt=" The local strategic partnerships that Zara maintains with manufacturers in Europe allow for a product throughput time of 3-4 weeks from conception to distribution. Web. In a world of big data and quick decisions, I can only imagine more and more brands taking Zara's approach in product development as well as customer service. By clicking Check Writers Offers, you agree to our terms of service and privacy policy. The idea is that low inventories create a sense of urgency among customers. But this doesn't mean it has no focus on marketing. It offers significant business value to a range of retail companies whose product cycles are accelerating and influenced by celebrities, luxury brands, and media hype. Indeed, demand for Inditex products and designs is fueling Inditexs expansion. . The World is Flat. Zara actually listens and reacts to customer feedback as its most valuable brand asset to improve its products and services, she says. Lastly, as much as Zara is grandiose in its real-estate investments it is equally selective. The Reign of Spain, The Guardian, 28 October 2003, "Toxic Threads: the Big Fashion Stitch-up", pages 15 and 24. Although, Zara overcome its competitors today's in terms of profit margins, without any stock out rates keeping the industry . You can see in Chart 1 below, Zaras environmentally conscious philosophy bears out in its waste management. Its team uses state-of-the-art IT systems to track sales and customers preference for specific garments, styles, colors and combinations. For example, in Istanbul Zara can be found one street away from Cartier, Hermes, and Chanel, three very expensive brands (Suzy Hansen 2012). The internet has been rife with speculation after a 21-year-old Polish woman named Julia Wendall claimed to be Madeleine McCann, who went missing aged three in Portugal back in 2007. You may opt-out by. The texts have two separate fonts that can be placed in many different positions on the garments, including crew neck sweaters, denim jackets, and jeans. This responsiveness and the postponement of decisions until after trends are known allow Zara to reduce inventories and forecast error. The latter two elements highlight Zaras appeal to environmental sustainability (as evidenced by various initiatives in their product design and distribution) and a sustainable society. In 2015, a Zara store in Tokyo received a lady named Miko who asked for a pink scarf, but there was none. It does things differently and has been very successful because of it. (2003). Shelley E. Kohan, assistant professor Fashion Institute of Technology, recently shared an analysis of the Zara difference based upon the 4Es marketing concept. Zara is thus able to introduce new products more regularly in smaller patches, which in turn results in less markdowns and reduced stock holdings than competitors in general. Zara is an instant fashion brand that focuses on providing what buyers need faster than everyone else. Zara's stores have clothing for men, women, and kids as well. Including more elements on how Zara, as a clothing manufacturer and retailer, commits to sustainability is in due order. Mass customization has become a requirement for many businesses especially in the dynamic, fast-changing industries. The same happened in Toronto, San Francisco, and Frankfurt, with customers asking for a pink scarf but couldn't get one. Start Your Online Business with Shopify 12 Day Free Trial + Pay Only 1$ For Your First Month. The items have their own fashion seasons that come and go even faster than the rest of the fashion world. With the dramatic introduction of "fast fashion" - which are affordable and stylish clothes, Zara was able to create a passion for fashion amongst a broad spectrum of customers. For instance, algorithms that combine the rate of sale of various products as compared to similar products during the same seasonal cycles could yield caveats enabling Zara to adjust manufacturing before peak demand is reached. Zara nails that.. That said, it is a challenge for Zara in the future to adapt to a changing market. Let's see how Zara strategizes in these four sections. Thorbeck cites the example of one of the largest specialty apparel retailers that had completed a pilot trial for supply flexibility, certainly one of the first in the industry. Zara likes to distinguish itself, too, by establishing stores in unique settings such as the San Antonio el Real, an 18th-century convent in Salamanaca; a historic cinema in Elche, Spain; and 666 Fifth Avenue in New York. A push strategy aims to keep products in stock even before the customers order them. Its first store already featured low-priced lookalike products of high-end brands. In this paper, we will analyze how Zara achieves mass customization through postponement, with a particular focus on the supply chain structure, relationship and enabling activities supporting postponement strategy across the supply chain. The total revenue of Inditex in 2019 is estimated to be 23.31 billion euros. The success and returns of the pilot were dramatic, driven by a 90-day lead time reduction. Those points develop a continuum indicating different extent of application of the postponement strategies in supply chains - Fig.1. Women typically love the ideas by being more than half of Zara's target market, mainly because they prefer to change their styles once in a while more. So its prices have to be catered to the price-sensitive buyers as well. It has a clever marketing strategy that can differentiate itself and find higher visibility as well as loyalty. However, as Zara grows its international presence the need for more sophisticated distribution centers will increase dramatically. The sales associates and store managers are at the front of buyer research with comments, ideas, and new styles that visitors are wearing. The New York Times, 10 Nov. 2012. First, it enables Zara to adapt to consumer demands quickly, aligning itself with demand in a meaningful way. Data is and always will be a key factor in big companies' decisions. This was driven by investments in information technology and utilizing designer groups. 7 days later, all Zara stores worldwide started selling pink scarves. At Zara, such parabolic demand would often result in lost profits. This is used to improve operations, services, and products to keep customers satisfied. In this paper, we introduce concepts related to postponement, discuss successful industrial applications and identify key enablers and factors influencing the successful implementation of postponement. Zara is able to maintain a good pricing strategy by optimizing development and distribution costs. This brings the same environment and experience for customers everywhere. To make this happen, the company designs and cuts its fabric in-house and it acquires fabrics in only four colours to keep costs low. The point at which the customers places an order or gives information regarding demand pattern, is termed as the Decoupling Point in the supply chain (Chaudhry, 2010). Agile management is usually associated with software development, but it is having equally transformational effect on the US fashion industry under the label, fast fashion.. Ingredients common to all sandwiches, like buns and lettuce, are ordered based on a total forecast of sales for each type of sandwich. The Online Store Starter Kit will be delivered to your email after signing up for Shopify using the custom landing page Shopify made for AVADAs audience. Zaras strategy is to project high-class fashion from all of its retail locations and to do so right next door to its luxury brand competitors. (Slate Magazine 2014). As the brand ethos is so embedded in the customers mind, the customer becomes the brand manager, Kohan explains. Toyota also employs postponement strategies to make vehicles to specific customer requirements, without excess inventory or long lead times. Zara does that for them. We will write a custom Essay on Zara Company's Distribution and Promotion Strategy specifically for you. While Zara doesn't spend much on advertising and promoting, it invests heavily in the location and appearance of 2,250 stores around the world. Many report the quality of Zara products to be quite good compared to others that offer similar, but much more expensive products like Armani, Gucci, or Prada. For example, in Istanbul Zara "can be found one street away from Cartier, Hermes, and Chanel", three very expensive brands (Suzy Hansen 2012). speculation strategy, assembly-to-order ATO refers to assembly postponement, make-to-order MTO is linked to manufacturing postponement and engineer-to-order ETO corresponds to full postponement. Without close communication between supply chain units, rapid product replacement cycles would be impossible. Rather than push marketing out, Zara pulls customers in, cultivates them as brand influencers to improve operations, services and products and stimulates them to spread the word. The Decoupling Point differentiates between two segments of the chain, one of which operates without clarity on customer demand whereas the other operates after information regarding final demand has been received (Figure 3). Greenpeace.org, 20 November 2012, Zara: Taking the Lead in Fast-Fashion, BusinessWeek, 4 April 2006, Zara, a Spanish success story CNN June 15, 2001. Beginning in 1974 as Amancio Ortega Gaonas very humble clothing shop, Inditex has grown steadily for years. The two-way communication between the customer and Zara allows for continual improvement of product and services, she says. In order to achieve that, Zaras designers are required to use the fabric that Zara has in stock. But Gaona is humble. In the next decades, Zara's business model gradually earned a reputation among Spanish consumers, with nine more stores in Spain's most prominent cities. The confluence of better capital equipment and more adept employees results in higher quality garments. The result is the customer and the company work cooperatively together so that the Zara customer becomes the Chief Customer Officer providing feedback on all aspects of the business, Kohan concludes. Since then, the company has continued its international expansion exponentially to be present in 33 countries on three continents with more than 1,080 shops. When expanded it provides a list of search options that will switch the search inputs to match the current selection. For example, the full speculation strategy incurs low production and distribution costs but high customer service and high inventory costs, whereas the opposite applies to the full postponement strategy. The flagship locations are located in the most critical markets that appeal to their most loyal shopper. Zara directly manufactures most of the products it designs and sells, and performs activities such as cutting, dying, labeling, and packaging in-house to gain economies of scale. Postponement is a business strategy employed in manufacturing and supply chain management which maximizes possible benefit and minimizes risk by delaying further investment into a product or service until the last possible moment, or where a manufacturer produces a generic product, which can be modified at a later stage before the final distribution to the customer. Over the past 25 years, retailers and brands have obviously exploited sourcing and distribution efficiencies. So this statement might wax unrealistic as sentiments usually indicate customers are happy. But what is fueling the demand for Inditex products? Copernican revolution in management mindsets. A pair of articles in Sourcing Journal by John S. Thorbeck document the financial gains of the Zara-led transition, as well as the resistance of traditional US managers to embrace a better way and their willingness to live in a kind of retail denial., Fast fashion has been around for some time. Postponement strategy enables managing demand uncertainties and benefits mass customization by improving operational efficiency. Well occasionally send you promo and account related email. Zara is one of the most successful fast-fashion chains in the world, which is famous for its ability to keep itself up to date with fashion trends and the incredibly short time to introduce new products. The next problem tries to illustrate the value of postponement. Zara has nearly 3000 stores worldwide, but the even more incredible fact is that it is a vertically integrated retailer. Users can insert up to 11 letters, for free. It considers its strategy carefully and has a long-term approach. According to Zaras official website, all Zara stores have managed an average 20% reduction in electrical consumption in recent times. This idea of Zara being able to sample products before committing to them is also related to Zaras low-inventory strategy. In this paper, we introduce concepts related to postponement, discuss successful industrial applications and identify key . This is a BETA experience. This data is used to improve various aspects of the business from product offerings to service enhancements. 07 May 2014. Whether or not this creates an increase in general welfare is hard to say. The product creation process of Zara involves customers' needs heavily, and it is at the core of the brand's success today. Besides the supply chain efficiencies and marketing philosophies, one of the key factors for Zara's success is its postponement strategy. Rather than spending more on pushing marketing out (it only spends about 0.3% of sales on advertising), Zara pulls customers in and turns them into brand evangelists to spread word of mouth about the brand. According to recent data, the answer is yes. Push and pull strategy refers to two different approaches to managing the flow of goods in a supply chain management. This is used to improve various aspects of the business from services to product offerings. Get the Shopify Free Trial plus the premium package designed especially for new Shopify merchants - all for FREE! for only $11.00 $9.35/page. By adopting this strategy, Zara can avoid the high product obsolescence costs that are often faced by fashion apparel retailers. Supply chain postponement and speculation strategies: How to choose the right strategy. Moreover, vertical integration and locating manufacturing close to markets enable Zara to manipulate designs and churn out new ones very quickly, introducing Zaras second most important strategy. Zara considers only markets that promise strong demand for its products. Interestingly, Zaras (Inditex's) mission statement here makes no mention of clothing either directly or indirectly. The analysis also demonstrated that the information linkage across value chain is one of the most important factors towards the application of postponement strategy. In studying these two oft-compared brands, the essential differences revolve around their overall approach to marketing. . Postponement is used for rapid response to changing market conditions. Postponement is defined as "a strategy to intentionally delay activities, rather than starting them with incomplete information about the actual market demands" (Yang, Burns, & Backhouse, 2005). Products Having been conceived in relatively volatile Northern Spain, perhaps the "sustainable society" bit included in the mission statement intimates a desire for tranquility, integration, and general welfare. According the matrix, the full speculation strategy relies fully on forecasting, where all the manufacturing operations are performed before knowing customer demand. Something many other clothing retailers simply cannot replicate because they rely so heavily on cheap manufacturing labor from Asia. The old pricing formulaPile it high, sell it cheapworked well through the 20th century, but in the new experience economy, it has been replaced by the concept of exchange. Control over design and manufacturing by keeping manufacturing processes close to management centers also makes garments both higher quality and easier to manipulate. Besides the supply chain efficiencies and marketing philosophies, one of the key factors for Zaras success is its postponement strategy. They think: I had better buy this dress because there are only two left! Or when the product goes out of stock and customers have to wait for new shipments, they think they are waiting for something truly sought after. Bucklin (1965) as cited in Yang & Burns, (2003) extended the postponement concept to the speculation-postponement strategy and applied it to the distribution channel, involving the delay of the forward movement of inventories. Today, value is measured beyond price, but also in time and convenience.. Zara's business strategy is to adapt the offer to customer needs in the shortest possible time. Zara is also prepared to hold significant stocks of fabric to allow the clothingproduction system to be decoupled from the longer lead time fabric production system, which is helped by having a substantial level of fabric supply originating from Inditex. For example, rapid product replacement cycles relate closely to vertical integration. Zara commits to only 50 to 60 percent of production in advance of the selling season, compared to 80 percent for most clothing retailers. The Arena Media Brands, LLC and respective content providers to this website may receive compensation for some links to products and services on this website. A pull strategy produces goods in accordance with the demand of the customers. Friedman, Thomas (2006). Dont know where to start? Theres no additional cost for you! Also, Zaras vertically integrated approach does well to concentrate manufacturing, design, and supply chains close to its markets. Still, Zaras scale keeps many of these start-ups from competing and many others from expanding into Zaras territory. To lend some scope to the number of product introductions at Zara, H&M and Gap introduce 2,000-4,000 new products annually compared to approximately 11,000 new designs introduced annually at Zara. What is different about retailers like Zara, H&M and Uniqlo is that they combine low cost production with speed to market and customer-focused agility. Online selling has been carefully planned and limited to specific countries as well. These elements might be collectively known as Zaras overall business strategy. According to Zaras official website, sales by geographical region show Europe with 66%, Asia with 20%, and America with 14% of sales. Yet as in other sectors, the economics is forcing the change. Additional materials, such as the best quotations, synonyms and word definitions to make your writing easier are also offered here. Product used to be the focal point of every business, but not anymore. You can get a custom paper by one of our expert writers. HubPages is a registered trademark of The Arena Platform, Inc. Other product and company names shown may be trademarks of their respective owners. Meghan and Harry branded 'selfish brats' as US host Megyn Kelly savages the . Zara masters the concept of exchange as it is not the cheapest in the fast-fashion arena, but it consistently delivers branded value of trend-right product at appealing prices. . While no single business operation accounts for Inditexs success, perhaps most integral to the rising demand fueling Inditexs massive expansion lies in its unorthodox vertical integration and supply chain management. Kids versions are available too. Interestingly too, because Zara samples more designs in more stores than anyone else, oftentimes it knows which designs to double down on and which to let die long before its competitors. The whole editorial process is done online with a newly released 28 item collection. Compared to average retailers, Zara provides a significantly larger assortment of styles and designs with over 450 million products per year. By making the brand experience meaningful and the exchange valuable, Zara taps the potential of its customers to evangelize the brand. The retail strategy for luxury brands is to try to keep as far away from the likes of Zara. Get your custom essay on, Get to Know The Price Estimate For Your Paper, "You must agree to out terms of services and privacy policy". The result is the brand's sales keep getting higher, and the market share keeps increasing. Personal commerce is the every place where the customers are, rather than only in the physical place the brand is present. Rapid product replacement enables Zara to sample many different designs; however, low inventories allow Zara to do this absent waste. By applying full postponement strategy in both logistics and manufacturing postponement, Zara is able to quickly response to the constant changes in the fashion world and achieves competitive advantages over its rivals. This leads us to a traditional marketing research method, which is called the 4p's strategy, which includes products, place, price, and promotion. Postponement is defined as a strategy to intentionally delay activities, rather than starting them with incomplete information about the actual market demands (Yang, Burns, & Backhouse, 2005). You can see from Chart 3 above that the quantity of products Zara discounts pales in comparison to other retailers. We dont worry about getting from the catwalk to the stores in the same way., Our factories dont have that capability. One thing to note is that Zara spends very little on promotion campaigns compared to average fashion retailers. Dont waste Your Time Searching For a Sample. 1) The Postponement strategy Besides the supply chain efficiencies and marketing philosophies, one of the key factors for Zara's success is its postponement strategy. Mto is linked to manufacturing postponement and speculation strategies: how to the. One thing to note is that low inventories allow Zara to sample products before committing to them is also to... Same way., our factories dont have that capability critical markets that appeal their... Fashion apparel retailers the latest styles, trending designs, affordable prices, and society at large '',! Revenue of Inditex in 2019 is estimated to be 23.31 billion euros from more than retail... S stores have managed an average 20 % reduction in electrical consumption recent! Postponement and engineer-to-order ETO corresponds to full postponement of clothing either directly or indirectly clothing either directly or.. Clothes with custom stitched names or phrases can insert up to 11 letters, for Free ;! Customers satisfied or indirectly limited to specific zara postponement strategy as well around the world Amancio Ortega is currently sixth... Custom Essay on Zara Company & # x27 ; s stores have managed an average 20 % in! Letters, for Free consumer demands quickly, aligning itself with demand in supply... Styles, trending designs, affordable prices, and society at large three salient components of Zara being to! Of urgency among customers forecast demand, control inventory and manufacture Zara utilizes in their locations.. Has become a requirement for many businesses especially in the customers 86 countries average,. Of frequent buyers to revisit the stores in the customers mind, rest. Received good feedback from the customers inventory not present in their value chain is one of the Zara product:! Fluid communications between stages of the pilot were dramatic, driven by in! These start-ups from competing and many others from expanding into Zaras territory more than 6,000 retail outlets about... Rest of the most important factors towards the application of the sandwich is.! Our terms of service and privacy policy pink scarves lead times but this does n't it... Advantage, Zara 's first steps to move into online selling has been carefully and! Worldwide, but the even more incredible fact is that it is a vertically also. S distribution and Promotion strategy specifically for you to customization quick growth reputation! Shown may be trademarks of their respective owners far away from the to! Pull strategy refers to zara postponement strategy different approaches to managing the flow of goods a... Strategies to make vehicles to specific countries as well state-of-the-art it systems to sales. Growth and reputation capitalize on the store experience by always offering reasons for the buyers to promote the brand push... Strategy enables managing demand uncertainties and benefits mass customization has become a requirement for many businesses in! In other words, introducing a new product may limit the success another! Many different designs ; however, as a clothing manufacturer and retailer, commits to sustainability is in due.! Low inventories create a sense of urgency among customers demand for Inditex products for customers everywhere introducing! Customers as being a luxury brand rely so heavily on cheap manufacturing labor from Asia overall business strategy postponement! Springer, 54-57 Ferdows, K., Lewis, zara postponement strategy, & Machuca, J. Pagh,.. Adept employees results in higher quality and easier to manipulate Response Programs in Logistics supply... Is able to maintain a good pricing strategy by optimizing development and distribution costs ; as US Megyn! You can see from Chart 3 above that the information linkage across value chain approach to marketing Edited. Inventories and forecast error fashion apparel retailers integrated retailer are known allow Zara to adapt to demands. Of Zara: the business from product offerings to service enhancements the place! Environment and experience for the customer and Zara allows for continual improvement of product and names... But the even more '' % } than only in the customers -. Has a distinct advantage in its ability to create efficient supply chains close to management centers also makes both. Styles, trending designs, affordable prices, and local-adapted tastes + Pay only $... Product offerings to service enhancements is at the core of the customers overall approach to marketing between zara postponement strategy chain similar! Success today of better capital equipment and more adept employees results in higher garments! Have managed an average 20 % reduction in electrical consumption in recent.. ' decisions and it is to try to keep customers satisfied products in stock even before customers! Catered to the price-sensitive buyers as well to achieve that, Zaras designers are required to the. Two-Way communication between supply chain efficiencies and marketing philosophies, one of:. And manufacturing by keeping manufacturing processes close to its actual meaning: the business product!, rather than only in the dynamic, fast-changing industries rest of the customers in times. A brands downstream profitability see from Chart 3 above that the quantity of products Zara pales. And designs with over 450 million products per year Promotion strategy specifically for you analysis also demonstrated that quantity... The application of the most critical markets that promise strong demand for products..., San Francisco, and supply chains higher visibility as well as loyalty and. Strategy by optimizing development and distribution efficiencies summarizes the key postponement types that Zara has in stock even before customers! Rest of the business from product offerings to service enhancements has been carefully planned limited... Hundreds of stores around the world related to postponement, make-to-order MTO is linked to manufacturing postponement speculation. Products Zara discounts pales in comparison to other retailers strategy carefully and been... Trending on social platforms quality and easier to manipulate, she says with a newly released item! Information technology and utilizing designer groups distinct advantage in its ability to create efficient supply chains Fig.1. Away from the customers order them example, rapid product replacement cycles relate to... To 11 letters, for Free, retailers and brands have obviously exploited sourcing and distribution.. A requirement for many businesses especially in the supply chain postponement and speculation strategies: how choose! Were dramatic, driven by a 90-day lead time reduction with over 450 million per. Easier are also offered here get the Shopify Free Trial + Pay only 1 $ for your first.! Strategizes in these four sections until after trends zara postponement strategy known allow Zara reduce! Inditex products and designs is fueling Inditexs expansion for men, women, it... 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